U.S. stocks were in the green on Monday, with many countries resuming normal, every day life. The Dow Jones Industrial Average fell 0.05% to 24,318, the S&P 500 Index rose 0.33% to 2,939 and the Nasdaq Composite Index advanced 1.03% to 9,216.
Non-index stocks have also posted gains and losses recently. Shares of Coty Inc. (NYSE:COTY) fell almost 5% on Monday after the company announced third-quarter results. It posted a loss of 8 cents per share, beating analysts' estimates by 4 cents. Revenue of $1.53 billion declined 23.1% year over year, but beatexpectations by $10 million.
The cosmetic company's gross margin for the quarter was 59.6%, down 320 basis points from the prior-year quarter, while the adjusted gross margin was 60.3%, down 260 basis points, primarily due to the decline in sales volume as a result of negative impacts from Covid-19, increased obsolescence expense and costs related to the shutdown of some manufacturing plants.
On a year-to-date basis, the gross margin was 61.9%, up 30 basis points from a year ago, the same increase as the adjusted gross margin, which was situated at 62.1%.
Moreover, the company registered an operating loss of $258.8 million, down from the third quarter of 2019 due to lower sales and a weak gross profit. The adjusted operating income was $0.1 million, down from $229.5 million in the prior year, caused by the lower gross margin and fixed-cost deleverage.
On a year-to-date basis, the reported operating loss was $97.4 million, which was up from a reported operating loss of $739.8 million a year ago due to an impairment charge of $977.7 million in the prior year. The adjusted operating income registered a $479.8 million decline.
The net cash used in operating activities totaled $257.5 million, compared to $213.7 million in the prior-year period. The decline was due to a weaker cash quarter, working capital management initiatives, receivables factoring arrangements and timing of payables. Year-to-date operating cash flow was $204.5 million, down $246.9 million from a year ago.
Furthermore, Coty suspended the dividend through April 1, 2021 or when the leverage ratio reaches 4.
Several hedge fund managers were active at the end of December. Jim Simons (Trades, Portfolio)' Renaissance Technologies boosted his stake 237% to 1,852,568 shares. Joel Greenblatt (Trades, Portfolio) increased his position 16% to 915,386 shares. On the other hand, Tom Russo (Trades, Portfolio) reduced his holding to 14,186, while Philippe Laffont and Paul Tudor Jones (Trades, Portfolio) sold out of the stock.
Cardinal Health Inc. (NYSE:CAH) +6.8%
Resmed Inc. (NYSE:RMD) +5.5%
Dollar General Corp. (NYSE:DG) +4.8%
Helmerich and Payne Inc. (NYSE:HP) +3.3%
AmerisourceBergen Corp. (NYSE:ABC) +4%
Target Corp. (NYSE:TGT) +3.6%
Under Armour Inc. (NYSE:UA) -10.1%
Flowserve Corp. (NYSE:FLS) -7.2%
Alliance Data Systems Corp. (NYSE:ADS) -5.7%
Mosaic Co. (NYSE:MOS) -6%
CF Industries Holdings Inc. (NYSE:CF) -5.6%
Tapestry Inc. (NYSE:TPR) -5.4%
The main European stock markets were mixed. The U.K.'s FTSE 100 rose 0.06%, France's CAC 40 lost 1.31%, Germany's Dax dipped 0.73% and Spain's Ibex 35 declined 1.63%.
In Asia, Japan's Nikkei 225 gained 1.05%, India's BSE Sensex fell 0.26%, Hong Kong's Hang Seng rose 1.53% and China's Shanghai Composite slid 0.02%.
Disclosure: The author holds no positions in any stocks mentioned.
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